In a recent blog post, PULSE partner Colorado Bioscience Association (CBSA) highlighted the fundamental role of pro-innovation mergers and acquisitions in driving life sciences innovation and economic growth in Colorado and beyond.
Read their blog post below:
In October 2023, CBSA partnered with more than thirty leading organizations to launch the Partnership for the U.S. Life Science Ecosystem (PULSE), a coalition working to raise awareness of the fundamental role that mergers and acquisitions (M&A) play in advancing biopharmaceutical innovation. A year later, as federal antitrust agencies have pushed an increasingly aggressive enforcement agenda, the coalition’s goals remain acutely relevant to Colorado’s dynamic life sciences ecosystem.
Life Sciences M&A Fuels Growth & Innovation in Colorado
Bringing life sciences innovation to patients is like a competitive relay race — no one company can do it alone. Across Colorado, hundreds of early-stage companies are working to transform novel scientific discoveries into breakthrough therapeutics for patients. M&A represents a path for these companies to connect promising innovations with resources, expertise, and infrastructure from across the ecosystem, accelerating the path from the lab to the patient.
Colorado is a leading hub for life sciences innovation, as emphasized in our national economic development campaign, Colorado Hub for Health Impact. Colorado is home to 720 life sciences companies and organizations, which directly employ over 38,000 people and contribute $4.4 billion annually to the local economy. The state’s life sciences ecosystem has raised over $1 billion dollars in funding annually for the past seven years, with $1.2 billion raised in the first half of 2024—a record influx which drives high-wage employment and generates significant economic growth. M&A allows Colorado’s life sciences companies to raise capital, cultivate scientific discoveries, and deliver groundbreaking innovations to patients.
Concerning Trends in Antitrust Enforcement
Despite these successes, recent policy shifts from the U.S. Federal Trade Commission (FTC) and Department of Justice (DOJ) threaten to undermine Colorado’s dynamic life sciences ecosystem and M&A across the country. In 2023, the Agencies issued new Merger Guidelines outlining a range of new tools to be able to challenge even competitive, pro-innovation M&A. Compounding these changes, the FTC’s recent revisions to the Hart-Scott-Rodino (HSR) premerger notification rules have imposed stricter, more burdensome reporting requirements for companies pursuing an M&A deal.
Taken together, these sweeping changes signal an aggressive enforcement approach that risks stifling essential deals and deterring the scientific risk-taking and investment that drives innovation and growth.
Innovators and Patients Need Competitive M&A in Colorado
If Colorado and the rest of the country are to sustain the incredible progress made in the life sciences, it will be essential for lawmakers and regulators to support policies that encourage competitive, pro-innovation M&A. We must continue to advocate for policies that recognize the unique and fundamental role of M&A in the life sciences.